Forexpros – The dollar fell against most major world currencies on Monday after a New Democracy victory in Greek elections on Sunday sparked a global risk-on rally.

Talk the U.S. Federal Reserve may consider stimulus measures for the economy this week weakened the greenback as well.

In Asian trading on Monday, EUR/USD was trading up 0.34% at 1.2682.

Greek elections served as the market’s chief weather vane on Monday.

New Democracy edged out the leftist Syriza, which favored scrapping austerity measures tied to bailout money.

While Syriza raked in a good amount of votes, New Democracy and PASOK, another pro-bailout party, appeared on track to garner enough votes at the time of writing to push through a coalition government in favor of sticking with the bailout.

Past Greek administrations agreed to austerity measures such as layoffs and spending cuts in exchange for bailout aid, and scrapping austerity threatened to halt the flow of rescue funding and could have opened the door to a Greek exit of the currency union.

New Democracy politicians favor sticking with the bailout, though they have said the country needs more growth-oriented policies going forward.

Leaders across Europe have complained that austerity policies have cut into growth rates and have exacerbated economic downturns.

The New Democracy victory sparked relief buying across markets worldwide, which sent the dollar falling as investors emerged from the safe haven of the greenback as well as the yen and took on risk.

Meanwhile in the U.S., the Federal Reserve will hold its monetary policy meeting June 19-20.

Talk the Federal Reserve will intervene to stimulate a sagging economy is growing, either through outright bond purchases from banks, known as quantitative easing, or by extending a $400 billion program shuffling up its Treasury holdings, known as Operation Twist.

Under Operation Twist, the Fed sells short-dated Treasury instruments and buys longer-dated Treasurys in tandem with the aim of pushing down long-term interest rates.

Unlike quantitative easing, Operation Twist does not expand the Fed’s balance sheet

The greenback was up against the pound, with GBP/USD down 0.11% and trading at 1.5698.

The U.S. currency was up against the yen, with USD/JPY trading up 0.70% at 79.26, and down against the Swiss franc, with USD/CHF trading down 0.36% at 0.9470.

The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.06% at 1.0209, AUD/USD up 0.26% at 1.0106 and NZD/USD up 0.48% at 0.7918.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.04% at 81.76.

Markets will continue to digest the outcome of the Greek elections on Monday.

On Tuesday, the Federal Reserve begins its monetary policy meeting.